Shares of PNC Infratech rose by nearly 12% on Wednesday, reaching an intraday high of Rs 347.80. By around 12:08 pm, the stock was trading 9.81% higher at Rs 341.25. This surge in share price came after the company announced the early completion of an important highway project, which boosted investor sentiment.
PNC Infratech revealed that it had received a Provisional Completion Certificate (PCOD) for the four-laning of NH 530B, a key stretch from Gaju Village to Devinagar Bypass in Uttar Pradesh, two months ahead of schedule. The project, which was executed under the Hybrid Annuity Model (HAM), covers a distance of 33.018 km and is valued at Rs 738 crore.
The early completion makes PNC Infratech eligible for a substantial bonus of Rs 1,428 crore from the National Highways Authority of India (NHAI), payable along with its first annuity payment. This positive development marks a significant operational achievement for the company, particularly after facing recent challenges.
Earlier, PNC Infratech’s stock had been under pressure due to disappointing second-quarter results for FY25. The company reported a 43.92% drop in net profit, which fell to Rs 83 crore from Rs 148 crore a year ago. Revenue from operations also declined by 25.33%, dropping to Rs 1,427 crore from Rs 1,911 crore in the previous year. Operating profit (EBITDA) decreased by 11% to Rs 356 crore.
Adding to the company’s challenges, the Ministry of Road Transport and Highways (MoRTH) had disqualified PNC Infratech and its two subsidiaries from bidding for new government contracts for one year, effective from October 18, 2024. Despite these setbacks, today’s announcement has helped restore market confidence in the company’s ability to execute projects successfully. As of September 2024, PNC Infratech’s promoters held a 56.07% stake in the company, demonstrating their continued commitment to its growth potential.
